Insurance. Veterans Life Insurance Program. Total VA life insurance coverage amount $1.3 trillion for 6.7 million Servicemembers and Veterans.

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1 Insurance Veterans Life Insurance Program VBA s various life insurance programs fall into three groups: Closed Life Insurance, Disabled Veterans Life Insurance, and Uniformed Services and Post-Vietnam Life Insurance. The life insurance programs provide Servicemembers and their families with universally available life insurance without underwriting, as well as traumatic injury protection insurance for Servicemembers. They also provide for the conversion to a renewable term insurance policy after a Servicemember s separation from service. In addition, the programs provide life insurance to Veterans who have lost their ability to purchase commercial insurance at standard (healthy) rates due to lost or impaired insurability resulting from military service. Current insurance benefits provided by the Veterans Benefits Administration are divided into three categories: Closed Life Insurance Programs Disabled Veterans Insurance Programs Uniformed Services and Post-Vietnam Veterans A detailed description of each program can be found on page 4. Total VA life insurance coverage amount $1.3 trillion for 6.7 million Servicemembers and Veterans. Veterans discharged on or after November 1, 2012, now have up to 240 days following completion of their military service to apply for Veterans Group Life Insurance (VGLI) without the need to prove that they are in good health for insurance purposes. This doubling of the previous 120-day no health questions period increases the opportunity for Veterans, particularly those who are disabled, to qualify for VGLI. This opportunity could be the only chance for the most seriously ill or injured to purchase life insurance coverage.

2 Insurance - Page 2 of 24 Table of Contents Insurance Veterans Life Insurance Program Table of Contents Purpose, Mission, Vision and Core Values Three Categories of Current Benefit Programs Acronyms Used in This Document VA Insurance Program Enhancements The Veterans Benefits Act of Single Sign On Project Closed and Current VA Insurance Programs Programs that no longer issue coverage Programs that issue coverage VA Life Insurance Compared to Private Sector Insurers Rankings by total life insurance in-force Quick Reference: Information by Fiscal Year Lives insured by fiscal year Benefits paid by fiscal year Number of death awards policies paid Amount of death awards policies paid Chart: Benefits paid by fiscal year by program Total insurance in-force by fiscal year Life insurance in-force by program during FY Operations Activity Number of operations processed on administered policies by fiscal year Coverage Established During FY New life insurance coverage issued in FY Policy lapses during FY Lump-sum payments made to policy holders during FY Life insurance dividend payments by fiscal years Lump-sum payments made on policies matured due to death during FY Monthly Payments to Policyholders at the End of FY Insurance monthly installment award payments to policyholders at the end of FY Monthly Payments to Beneficiaries in FY Insurance monthly installment award payments to beneficiaries in FY Age Distribution of Policyholders Age distribution for insurance programs number of participants and percent of program total SGLI Coverage SGLI by coverage level active duty and reserve duty FY SGLI coverage by branch and component of service FY FSGLI Coverage FSGLI by coverage level active duty and reserve duty FY FSGLI coverage by branch and component of service FY Contact Information Contact for Administered Programs (USGLI, NSLI, VSLI, VRI, S-DVI, VMLI) Contact for Supervised Programs (SGLI, FSGLI, TSGLI & VGLI) Version & changes Release history Date V1.0: Initial release 09/26/2014 U.S. Department of Veterans Affairs Veterans Benefits Administration

3 Purpose, Mission, Vision and Core Values Purpose The purpose of the VBA Insurance program is to provide life insurance benefits to Veterans and Servicemembers that may not be available from the commercial insurance industry due to lost or impaired insurability resulting from military service. Mission The mission of the VA Insurance program is to provide high-value Insurance services to America s Veterans, Servicemembers, and their beneficiaries. Vision The vision of the VA Insurance program is to be an organization that: Provides insurance services that are equal or superior to those provided by commercial insurance companies; Provides these services at a cost competitive with commercial companies; Provides fast, convenient access for our policyholders and beneficiaries; Provides customer communications that are fully explained, clear, timely and courteous; and Core Values Has a stable, diverse, knowledgeable, and satisfied workforce The Insurance Program shares VA s five core values that underscore the obligations inherent in our mission: integrity, commitment, advocacy, respect, and excellence. The core values define who we are, our culture and how we care for Veterans. Our values are more than just words they affect outcomes in our daily interactions with Veterans and with each other. The first letter of each word Integrity, Commitment, Advocacy, Respect, Excellence creates a powerful acronym, I CARE, that reminds each Insurance employee of the importance of their role. These core values come together as five promises we make as individuals and as a program to those we serve. The core characteristics define what we stand for, and help guide how we will perform our mission. They shape our strategy, guide the execution of our mission, and influence key decisions made within Insurance. Insurance - Page 3 of 24 U.S. Department of Veterans Affairs Veterans Benefits Administration

4 Three Categories of Current Benefit Programs Closed Life Insurance Programs These programs provided the same or better life insurance benefits than were available to private citizens. The closed life insurance programs no longer issue new coverage, but active policies continue. These programs include the National Service Life Insurance (NSLI), United States Government Life Insurance (USGLI), Veterans Special Life Insurance (VSLI) and Veterans Reopened Insurance (VRI). Disabled Veterans Insurance Programs These programs provide insurance coverage and services to Veterans who lose their ability to purchase commercial insurance at standard (healthy) rates because of their service connected disabilities. These programs continue to issue coverage. These programs include the Service-Disabled Veterans Insurance (S-DVI) and the Veterans Mortgage Life Insurance (VMLI). Uniformed Services and Post-Vietnam Veterans These programs provide active duty and reserve members of the uniformed services with insurance coverage and services that large-scale civilian employers commonly provide. These programs include Servicemembers Group Life Insurance (SGLI), Family Servicemembers Group Life Insurance (FSGLI), Servicemembers Group Life Insurance Traumatic Injury Protection (TSGLI) and Veterans Group Life Insurance (VGLI). All Servicemembers who have SGLI are automatically covered under TSGLI. Insurance - Page 4 of 24 U.S. Department of Veterans Affairs Veterans Benefits Administration

5 Acronyms Used in This Document Supervised insurance programs 1 Administered insurance programs 2 SGLI FSGLI TSGLI VGLI SDVI VMLI Servicemembers Group Life Insurance Family Servicemembers Group Life Insurance Family Coverage FSGLI provides coverage for spouses and children. Servicemembers Group Life Insurance Traumatic Injury Protection Veterans Group Life Insurance Service-Disabled Veterans Insurance Veterans Mortgage Life Insurance USGLI United States Government Life Insurance 3 NSLI National Service Life Insurance 3 VSLI Veterans Special Life Insurance 3 VRI Veterans Reopened Insurance 3 OSGLI DEERS Office of Servicemembers Group Life Insurance Defense Eligibility and Enrollment Reporting System 1 The supervised insurance programs are those which are run by the Prudential Insurance Company of America under the terms of a group policy with VA, and which are supervised by VA. 2 The administered insurance programs are those which are run directly by the VA Insurance Center. 3 These programs no longer issue coverage. Insurance - Page 5 of 24 U.S. Department of Veterans Affairs Veterans Benefits Administration

6 VA Insurance Program Enhancements The Veterans Benefits Act of 2010 The Veterans Benefits Act of 2010 resulted in increased coverage for several insurance programs: Veterans covered under the Veterans Group Life Insurance (VGLI) program are now afforded the opportunity to increase their coverage by $25,000 on each five-year anniversary of their policy, up to $400,000, the current legislated maximum coverage. This coverage can be issued regardless of the Veteran s health. Veterans Mortgage Life Insurance (VMLI) was increased from $150,000 to $200,000, effective January 1, Supplemental Service-Disabled Veterans Insurance (SRH) increased from $20,000 to $30,000, effective October 1, Coverage under the Servicemembers Group Life Insurance Traumatic Injury Protection (TSGLI) program was extended retroactively to October 7, 2001, to all Servicemembers who suffered a traumatic injury that resulted in a qualifying loss. Previously, this coverage was available only to Servicemembers serving in Operation Enduring Freedom and Operation Iraqi Freedom. Insurance - Page 6 of 24 U.S. Department of Veterans Affairs Veterans Benefits Administration

7 Single Sign On Project VBA implemented the Insurance Service Single Sign On (SSO) Project on August 21, The SSO Project combines two customer-facing web applications into a single interface. The SSO Project has the following new features: Veterans can apply for Service-Disabled Veterans Insurance (SDVI) and access their policy information using the same login information. Elimination of letters with personal identification numbers (PINs): SSO replaces the existing PIN letter proofing system with remote identity proofing provided by Equifax. Instead of waiting for a PIN letter in the mail, Veterans have real-time identity proofing and instant access to their account. Account Management Features: Veterans can manage their web account without having to call the Insurance toll-free number. They can retrieve a forgotten user ID, reset a password, and update their address or security questions. Updated Appearance: SSO uses the current VA web organization and look, which allows for a smooth transition from the main Insurance site to the SSO application. Veterans and Servicemembers can access the SSO from the Insurance website: insurance.va.gov/portal/ Insurance - Page 7 of 24 U.S. Department of Veterans Affairs Veterans Benefits Administration

8 Closed and Current VA Insurance Programs Programs that no longer issue coverage Matured insurance programs Years Maximum coverage United States Government Life Insurance (USGLI) $10,000 National Service Life Insurance (NSLI) $10,000 4 Veterans Special Life Insurance (VSLI) $10,000 4 Veterans Reopened Insurance (VRI) $10,000 4 Programs that issue coverage Uniformed Services and Post-Vietnam Veterans Life Insurance Disabled Veterans Life Insurance Active life insurance programs Servicemembers Group Life Insurance (SGLI) Family Servicemembers Group Life Insurance (FSGLI) Spouse s Coverage Family Servicemembers Group Life Insurance (FSGLI) Children s Coverage Servicemembers Group Life Insurance Traumatic Injury Protection (TSGLI) Veterans Group Life Insurance (VGLI) Service-Disabled Veterans Insurance (SDVI) Veterans Mortgage Life Insurance (VMLI) Year present present present present present present present Maximum coverage $400,000 $100,000 $10,000 $100,000 $400,000 $10,000 5 $200,000 Insurance - Page 8 of 24 4 Since 1972, dividends can be used to increase coverage by purchasing paid-up additions to the basic insurance. 5 An additional $30,000 of supplemental coverage is available to totally disabled Veterans. U.S. Department of Veterans Affairs Veterans Benefits Administration

9 VA Life Insurance Compared to Private Sector Insurers The following table compares VA life insurance programs with commercial life insurance companies. The comparison is based on the total face amount of active life insurance in-force. Rank 2013 Rankings by total life insurance in-force 6 Company Total life insurance (millions) 1 Metropolitan Life & Affiliates $4,284,213 2 Prudential of America Group $3,456,954 3 RGA Group $1,823,782 4 Great-West Life Group $1,805,763 5 Aegon USA Group $1,594,561 6 ING USA Life Group $1,571,171 7 AIG Life & Retirement Group $1,427,935 8 Northwestern Mutual Group $1,386,244 9 VA 7 $1,321, Swiss Reinsurance Life Group $1,299, Lincoln Financial Group $1,243, New York Life Group $1,235, Hartford Life Group $1,018, Genworth Financial Group $926, Scor Life US Group $918,860 6 Source: Best s Review (September 2013); FY 13 Exhibit of Insurance in-force. 7 VA data includes $229,050,000 of TSGLI coverage. Insurance - Page 9 of 24 U.S. Department of Veterans Affairs Veterans Benefits Administration

10 Quick Reference: Information by Fiscal Year Lives insured by fiscal year 8 Insured (program) Veterans (Administered Programs) 1,096,335 1,021, , , ,134 Veterans (VMLI) 2,273 2,381 2,395 2,466 2,419 Veterans (VGLI) 429, , , , ,990 Servicemembers (SGLI) 2,402,500 2,433,500 2,422,500 2,389,500 2,365,500 Spouses and Children (FSGLI) 3,168,000 3,272,000 3,254,000 3,193,000 3,103,000 Total lives insured 7,098,379 7,156,330 7,056,913 6,895,223 6,711,043 Face amount (billions) $1,106 $1,121 $1,115 $1,095 $1,081 The tables above display the number of lives insured and the face amount for both the administered and supervised insurance programs. Benefits paid by fiscal year 9 Insurance Page 10 of 24 Benefit type Death awards % Change FY 12 to 13 $ 2,322,113,344 $ 2,350,902,305 $ 2,342,223,271 $ 2,342,316,752 $ 2,255,883,414-4% Dividends $ 310,050,719 $ 273,294,139 $ 249,092,778 $ 206,738,298 $ 167,071,426-19% Loans made $ 55,764,000 $ 48,267,000 $ 43,278,000 $ 38,600,000 $ 36,902,000-4% Matured endowments Cash surrenders Disability claims $ 26,674,173 $ 32,581,366 $ 42,346,753 $ 47,314,756 $ 60,252,125 27% $ 48,214,456 $ 46,362,893 $ 45,806,200 $ 44,115,174 $ 42,118,101-5% $ 12,154,054 $ 10,925,122 $ 9,789,196 $ 8,551,777 $ 7,540,459-12% Total $ 2,774,970,746 $ 2,762,332,825 $ 2,732,536,198 $ 2,687,636,757 $ 2,569,767,525-4% The table above displays the amount of death awards paid to beneficiaries of both the administered and supervised insurance programs. It also displays the amount of dividends, loans, matured endowments, cash surrenders, and disability claims paid on administered policies. See chart at the bottom of the next page 8 Source: FY 13 State of Residence Report; FY 13 Exhibit of Insurance in-force. 9 Source: FY 13 Exhibit of Insurance in-force; FY 13 Statement of Operations and Changes in Net Position; FY 13 Statement of Cash Flows.

11 Number of death awards policies paid Administered 94,429 92,383 90,721 86,766 85,585 Supervised 8,634 8,875 9,162 9,337 8,775 Total 103, ,258 99,883 96,103 94,360 Amount of death awards policies paid Administered $1,082,988,898 $1,081,440,071 $1,078,356,004 $1,064,732,566 $1,073,344,783 Supervised $1,239,124,445 $1,269,462,234 $1,263,867,267 $1,277,584,186 $1,182,538,631 Total $2,322,113,343 $2,350,902,305 $2,342,223,271 $2,342,316,752 $2,255,883,414 Average payment $22,531 $23,217 $23,450 $24,373 $23,907 The tables above display the number and amount of policies paid upon death on both the administered and supervised insurance programs. 20% Chart: Benefits paid by fiscal year by program Portion of total each benefit type accounts for 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 83.68% 85.11% 85.72% 87.15% 87.79% 0.44% 1.74% 0.96% 2.01% 11.17% Disability claims Cash surrenders Matured endowments Loans made Dividends 0.40% 1.68% 1.18% 1.75% 9.89% 0.36% 1.68% 1.55% 1.58% 9.12% Data on previous page Death awards make up the rest of the total benefit payments. 0.32% 1.64% 1.76% 1.44% 7.69% 0.29% 1.64% 2.34% 1.44% 6.50% Compensatio Insurance Page 11 of 24 n

12 Total insurance in-force by fiscal year 10 Number of policies Total face amounts Avg. face amounts ,253,830 7,299,231 7,188,254 7,016,054 6,820,219 $1,336,911,969,456 $1,355,363,727,268 $1,348,775,789,037 $1,325,078,361,732 $1,307,713,914,107 $184,304 $185,686 $187,636 $188,864 $191,741 Life insurance in-force by program during FY Type of insurance Number of policies Total face amount Average face amount Maximum face amount USGLI 1,572 $3,795,511 $2,414 $10,000 NSLI 509,337 $6,297,407,187 $12,364 $10,000 VSLI 140,336 $1,955,315,234 $13,933 $10,000 VRI 20,568 $215,775,592 $10,491 $10,000 SDVI 251,497 $2,619,553,159 $10,416 $10, VMLI 2,419 $295,312,424 $122,080 $200, SGLI 2,365,500 $880,807,200,000 $372,356 $400,000 FSGLI - Child 2,048,000 $20,480,000,000 $10,000 $10,000 FSGLI - Spouse 1,055,000 $104,071,300,000 $98,646 $100,000 Insurance Page 12 of 24 VGLI 425,990 $64,418,255,000 $151,220 $400,000 Total 15 6,820,219 $1,081,163,914,107 $158, Source: Insurance FY 13 Exhibit of Insurance in-force Cover Sheet. Face Amount includes coverage for the TSGLI rider to SGLI. 11 Avg. face amount includes paid-up additional insurance where available. 12 Source: Insurance FY 13 Exhibit of Insurance in-force Cover Sheet. 13 Additional $30,000 available for totally disabled policyholders effective October 1, Maximum face amount increased to $200,000 on January 1, Excludes TSGLI.

13 Operations Activity Number of operations processed on administered policies by fiscal year Loans 28,109 29,249 30,187 30,237 31,056 Cash surrenders 10,371 9,986 9,561 9,024 8,296 Calls answered 647, , , , ,003 Correspondence received Change of address Online loan applications 110,564 88,609 79,361 70,072 65,511 46,744 29,830 37,820 24,562 24,153 1,939 2,066 2,542 2,896 3,051 Total , , , , , Source: Distribution of Operations Report. 17 Total does not include the number of Online Loan Applications in order to accurately represent the number of operations processed on administered policies. This policy was not followed in the 2012 Annual Benefits Report which is why the 2012 total number of operations processed is different in this report. Compensatio Insurance Page 13 of 24 n

14 Coverage Established During FY 13 The table below identifies the number of new policies issued for FY 13, the total coverage amount, and the average face value of the policies. In the case of SGLI and FSGLI, which is group insurance, the military services maintain the records on each insured Servicemember. New life insurance coverage issued in FY 13 Type of insurance Number of people insured Total coverage amount Average face amount Maximum face amount VMLI $51,097,806 $144,753 $200,000 SDVI 19 19,332 $247,953,000 $12,826 $10, VGLI 21 15,278 $4,497,525,000 $294,379 $400,000 FSGLI Child ,381 $1,993,810,000 $10,000 $10,000 FSGLI - Spouse ,373 $13,058,066,958 $98,646 $100,000 SGLI ,659 $76,078,565,959 $368,136 $400,000 Total 573,376 $95,927,018,723 $167,302 Insurance Page 14 of Source: VMLI Database FY 13 Reserve File Data. Maximum face amount increased to $150,000 on October 1, 2011, and increases to $200,000 January 1, Source: SDVI FY 13 Exhibit of Insurance in-force; State of Residence Report. 20 Source: Additional Coverage, up to $20,000, is available for totally disabled policyholders. Effective October 1, 2011, this is increased to $30,000. New Supplemental SDVI policies (2,043) were issued. 21 Source: VGLI - OSGLI Monthly Report to VA. 22 Source: SGLI / FSGLI Estimates based upon accessions to Active Duty and Reserve forces in FY 13. Data on accessions from Defense Manpower Data Center. Effective September 1, 2005, the maximum coverage for VGLI and SGLI increased to $400, Source: DEERS and Military Pay Records.

15 Policy lapses during FY Type of insurance Number Face amount Average face amount NSLI 3,796 $21,855,581 $5,758 VSLI 502 $3,668,250 $7,307 VRI 171 $962,250 $5,627 SDVI 1,456 $16,806,250 $11,543 Total 5,925 $43,292,331 $7, Source: FY 13 Exhibit of Insurance in-force. A policy lapses if the premium is not received within 65 days after the due date. Compensatio Insurance Page 15 of 24 n

16 Lump-sum payments made to policy holders during FY 13 Type of payment Matured endowment 25 Cash surrender 25 Dividends 26 Loans 27 Type of insurance Number Amount Average payment USGLI 165 $785,768 $4,762 NSLI 3,453 $55,828,879 $16,168 VSLI 2 $55,980 $27,990 VRI 31 $181,980 $5,870 SDVI 338 $3,399,518 $10,058 Total 3,989 $60,252,125 $15,105 USGLI 22 $56,094 $2,550 NSLI 3,987 $30,999,003 $7,775 VSLI 868 $5,703,492 $6,571 VRI 235 $1,354,796 $5,765 SDVI 712 $4,004,716 $5,625 Total 5,824 $42,118,101 $7,232 USGLI 1,572 $215,307 $137 NSLI 509,337 $115,048,330 $226 VSLI 140,336 $48,146,021 $343 VRI 20,568 $3,661,768 $178 Total 671,813 $167,071,426 $249 USGLI 65 $6,000 $92 NSLI 15,135 $13,396,000 $885 VSLI 4,144 $5,547,000 $1,339 VRI 1,156 $741,000 $641 SDVI 10,556 $17,212,000 $1,631 Total 31,056 $36,902,000 $1,188 Insurance Page 16 of Source of number: FY 13 Exhibit of Insurance in-force. Source of amount: FY 13 Statement of Operations and changes in Net Position. 26 Source of number: FY 13 Exhibit of Insurance in-force Cover Sheet. Source of amount: FY 13 Source and Application of Funds. 27 Source of number: FY 13 Statement of Cash Flows. Program numbers from an estimate based on Statistical Quality Control (SQC) reviews in FY 13 and percent of total. Source of amount: Insurance General Ledger Accounting System; Statement of Program Costs and Financing.

17 Life insurance dividend payments by fiscal years Dividend payments Number 1,049, , , , ,813 Total amounts Average payments $310,050,719 $273,294,139 $249,092,778 $206,738,298 $167,071,426 $295 $287 $291 $271 $ 249 Death claims are paid to the beneficiary upon the death of the insured person. In the case of FSGLI, the death claim is paid to the Servicemember. All other death claims are paid to the Veteran s or Servicemember s designated beneficiary. The table below provides a distribution of the lump-sum death claim payments by program. Lump-sum payments made on policies matured due to death during FY Type of insurance Number Amount Average payment USGLI 405 $994,647 $2,456 NSLI 64,726 $800,646,870 $12,370 VSLI 7,988 $111,865,938 $14,004 VRI 3,098 $31,270,329 $10,094 SDVI 9,146 $97,354,915 $10,645 VMLI 222 $31,212,084 $140,595 SGLI 29 2,036 $716,258,608 $351,797 FSGLI - Spouse $78,525,000 $96,944 FSGLI - Child 29 1,573 $15,740,025 $10,006 TSGLI 29 1,464 $67,400,000 $46,038 VGLI 29 2,892 $304,614,998 $105,330 Total 94,360 $2,255,883,414 $23, Source of number: FY 13 Exhibit of Insurance in-force; VMLI Database. Source of amount: FY 13 Statement of Operations and Changes in Net Position. 29 Source: SGLI and TSGLI Monthly Reports from OSGLI Includes Basic, Accelerated Benefit Option, & Conversion Pool. Compensatio Insurance Page 17 of 24 n

18 Monthly Payments to Policyholders at the End of FY 13 Although most Veterans choose to receive payments in a single lump sum, a monthly payment option is available for Cash Surrenders and Matured Endowments. In the two disability benefit provisions of policies Total and Permanent Disability Provision and Total Disability Income Provision no lump sum option exists; payments are made monthly. The table below provides data on monthly payments to Veterans. Insurance monthly installment award payments to policyholders at the end of FY Insurance Page 18 of 24 Type of payment Total disability income provision Matured endowments Cash surrenders Total and permanent disability Type of insurance Number Monthly total Average monthly payment USGLI 10 $7,902 $790 NSLI 4,291 $5,216,976 $1,216 VSLI 1,478 $2,003,400 $1,355 VRI 270 $214,620 $795 Total 6,049 $7,442,898 $1,230 USGLI 0 $0 $0 NSLI 306 $343,884 $1,124 VSLI 278 $333,702 $1,200 VRI 16 $12,120 $758 SDVI 13 $11,208 $862 Total 613 $700,914 $1,143 USGLI 0 $0 $0 NSLI 39 $48,270 $1,238 VSLI 1 $7,218 $7,218 VRI 1 $336 $336 SDVI 0 $0 $0 Total 41 $55,824 $1,362 USGLI 9 $2,628 $292 Total 9 $2,628 $ Source: Insurance Actuarial Valuation System (AVS) VAL-C (Settlement Option Benefits). Life income for NSLI, VSLI are 150% of the Lifetime Guaranteed Amount plus the Guaranteed Certain Only Amount. TDIP Income for NSLI, VSLI, and USGLI are 150% of the Lifetime Guaranteed Amount.

19 Monthly Payments to Beneficiaries in FY 13 A monthly payment option is also available in some programs for death claim payments. The following table provides data on monthly payments to beneficiaries. Insurance monthly installment award payments to beneficiaries in FY Type of insurance Number Monthly total Average monthly payment USGLI 1,048 $248,364 $237 NSLI 17,239 $10,464,096 $607 VSLI 498 $343,722 $690 VRI 134 $70,740 $528 SDVI 183 $76,080 $416 Total 19,102 $11,203,002 $ Source: Insurance AVS VAL-C (Settlement Option Benefits). Life Income for NSLI, VSLI are 150% of the Lifetime Guaranteed Amount and the Guaranteed Certain Only Amount. Compensatio Insurance Page 19 of 24 n

20 Age Distribution of Policyholders Because certain programs were active only during past wartime periods, their age distributions parallel the aging of all other Veterans of those periods. The programs in which policies can still be obtained (SDVI, VMLI, SGLI, VGLI) have policyholders across a wide distribution of ages. Age distribution for insurance programs number of participants and percent of program total Insurance Page 20 of 24 Type of insurance Age groups < USGLI % of all age groups 0% 0% 0% 0% 0% NSLI % of all age groups 0% 0% 0% 0% 0% VSLI % of all age groups 0% 0% 0% 0% 0% VRI % of all age groups 0% 0% 0% 0% 0% SDVI ,813 7,241 16,242 31,889 % of all age groups 0% 1% 3% 7% 15% VMLI % of all age groups 0% 1% 3% 13% 25% SGLI ,048 1,202, , ,468 71,287 % of Total 6% 51% 27% 13% 3% FSGLI Spouse 34 14, , , ,015 45,022 % of all age groups 1% 41% 36% 18% 4% FSGLI Children 34 1,966,068 81, % of all age groups 96% 4% 0% 0% 0% VGLI ,392 59, , ,957 % of all age groups 0% 3% 14% 31% 27% Total all types 2,118,460 1,726,859 1,079, , ,757 % of all age groups 31% 26% 16% 10% 4% Age groups continued on the next page. 32 Note: Data as of September 30, Source: VMLI Reserve Valuation June Data Adjusted for FY Source: OSGLI June Data Adjusted for FY 13. Dependent data from Defense Manpower Data Center. 35 Source: VGLI Attained Age in-force Report from Prudential.

21 Age distribution for insurance programs number of participants and percent of program total (continued) Type of insurance Age groups > Total all age groups Average age USGLI ,563 1, % of all age groups 0% 0% 0% 100% 100% NSLI , , , % of all age groups 0% 0% 74% 26% 100% VSLI , , , % of all age groups 0% 17% 83% 0% 100% VRI ,375 6,135 18, % of all age groups 0% 3% 63% 34% 100% SDVI ,131 30,159 11, , % of all age groups 55% 14% 5% 0% 100% VMLI 33 1, , % of all age groups 48% 10% 0% 0% 100% SGLI 34 1, ,365, % of all age groups 0% 0% 0% 0% 100% FSGLI Spouse 34 4, ,055, % of all age groups 0% 0% 0% 0% 100% FSGLI Children ,048,000 8 % of all age groups 0% 0% 0% 0% 100% VGLI 35 85,049 21,685 1, , % of all age groups 20% 5% 0% 0% 100% Total all types 212,675 75, , ,105 6,711,043 % of all age groups 3% 1% 7% 2% 100% See previous page for footnote references. Compensatio Insurance Page 21 of 24 n

22 SGLI Coverage The tables below show the number of SGLI policyholders. The total percentage by coverage level for both categories of duty status is shown. For simplicity, the maximum coverage is shown by itself, while all lesser coverage is combined. SGLI by coverage level active duty and reserve duty FY 13 Number with coverage Percent with coverage SGLI coverage level $50,000- $350,000 $400,000 (maximum) $50,000- $350,000 $400,000 (maximum) Active duty 84,516 1,419, % 94.38% Reserve duty 138, , % 81.48% Total 223,062 2,028, % 90.09% SGLI coverage by branch and component of service FY 13 Insurance Page 22 of 24 Active duty Reserve /National Guard Branch Total number eligible for SGLI Number with SGLI Percent of eligible with SGLI Percent of total with SGLI Army 566, , % 25.1% Navy 343, , % 15.1% Air Force 349, , % 15.3% Marine Corps 207, , % 9.2% Coast Guard 40,676 39, % 1.8% NOAA % 0.0% Public Health Service 6,919 6, % 0.3% Total 1,514,332 1,504, % 66.8% Army 569, , % 22.7% Navy 45,542 45, % 2.0% Air Force 154, , % 6.7% Marine Corps 32,461 31, % 1.4% Coast Guard 8,910 8, % 0.4% Total 810, , % 33.2% Grand Total 2,324,892 2,252, % 100.0%

23 FSGLI Coverage The tables below show the number of insured FSGLI spouses. The total percentage by coverage level for both categories of duty status is shown. For simplicity, the maximum coverage is shown by itself, while all lesser coverage is combined. FSGLI by coverage level active duty and reserve duty FY 13 Number with coverage Percent with coverage FSGLI coverage level $10,000- $90,000 $100,000 (maximum) $10,000- $90,000 $100,000 (maximum) Active duty 12, , % 98.39% Reserve duty 14, , % 95.19% Total 26,608 1,028, % 97.48% FSGLI coverage by branch and component of service FY 13 Active duty Reserve /National Guard Branch Total number eligible for FSGLI Number with FSGLI Percent of eligible with FSGLI Percent of total with FSGLI Army 337, , % 29.3% Navy 171, , % 14.8% Air Force 185, , % 16.1% Marine Corps 96,150 92, % 8.8% Coast Guard 28,929 22, % 2.1% NOAA % 0.0% Public Health 4,267 4, % 0.4% Service Total 824, , % 71.5% Army 345, , % 17.9% Navy 48,123 26, % 2.5% Air Force 138,704 75, % 7.2% Marine Corps 7,149 6, % 0.6% Coast Guard 4,584 3, % 0.3% Total 543, , % 28.5% Grand Total 1,367,866 1,055, % 100.0% Compensatio Insurance Page 23 of 24 n

24 Contact Information Department of Veterans Affairs home page Veterans Benefits Administration home page benefits.va.gov Insurance information home page Insurance Service Single Sign-on (SSO) website Annual Benefits Report: (Office of Performance Analysis & Integrity) Contact for Administered Programs (USGLI, NSLI, VSLI, VRI, S-DVI, VMLI) Toll-Free Telephone: Death claims fax: All other fax inquiries: General Correspondence Mailing addresses: Department of Veterans Affairs Insurance Center PO Box (See Below) Philadelphia, Pennsylvania For correspondence concerning: Use PO Box: Death, waiver of premium or VMLI P.O. Box 7208 claims and S-DVI applications: Loans and Cash Surrenders: P.O. Box 7327 Premium and Loan/Lien P.O. Box 7787 Payments: All Other Insurance Mail: P.O. Box Contact for Supervised Programs (SGLI, FSGLI, TSGLI & VGLI) When a Servicemember or family member is looking for information about the SGLI and VGLI programs and cannot find answers to their questions on the SGLI/VGLI portion of the Insurance website, they can call, or write to the Office of Servicemembers Group Life Insurance (OSGLI). OSGLI administers the SGLI and VGLI programs including the processing and payment of claims. OSGLI can be reached at: Toll-free Telephone: Death and accelerated benefits claims fax: General Correspondence mailing address: The Office of Servicemembers' Group Life Insurance Center 80 Livingston Avenue Roseland, New Jersey Insurance - Page 24 of 24 All other fax inquiries: Insurance Specialists are available 8:30 AM to 6:00 PM (Eastern Time) Monday - Friday The best days to call are Wednesdays through Fridays U.S. Department of Veterans Affairs Administration